2017-07-21 08:00:18 CEST
2017-07-21 08:00:18 CEST
REGULATED INFORMATION
Metso Oyj - Half Year financial report
Metso's Half-Year Financial Review January 1 - June 30, 2017
Metso's Half-Year Financial Review January 1 - June 30, 2017
Metso Corporation, Stock exchange release, July 21, 2017 at 09:00 a.m. EEST
Metso will arrange a results audiocast today at 1:00 p.m. EEST. The audiocast is
viewable at www.metso.com/latestreports. A simultaneous conference call will be
arranged, allowing participants to ask questions. Details of the audiocast at
the end of this release.
This is a summary of Metso's Half-Year Review January 1 -June 30, 2017. The
complete report is attached to this release and is also available at
www.metso.com/latestreports.
Figures in brackets refer to the corresponding period in 2016, unless otherwise
stated.
Second-quarter 2017 in brief (compared to the second quarter of 2016)
· Market activity remained healthy overall and improved in mining equipment.
· Sales have not yet reflected the order growth, which in addition to mix
had the most significant impact on profitability.
· Orders received decreased 2 percent and totaled EUR 749 million (EUR 761
million), but were 12 percent higher when adjusting for a large mining equipment
order in the comparison period. Services orders increased 8 percent to EUR 480
million (EUR 444 million)
· Sales increased 1 percent to EUR 675 million (EUR 671 million). Services
sales increased 1 percent and totaled EUR 445 million (EUR 439 million)
· Adjusted EBITA decreased to EUR 70.0 million, or 10.4 percent of sales
(EUR 77.3 million, or 11.5%)
· Earnings per share totaled EUR 0.24 (EUR 0.28)
Half-Year 2017 in brief (compared to the half-year of 2016)
· Orders received increased 4 percent and totaled EUR 1,482 million (EUR
1,424 million). Services orders increased 11 percent to EUR 976 million (EUR
877 million)
· Sales increased 4 percent to EUR 1,323 million (EUR 1,272 million).
Services sales increased 2 percent and totaled EUR 868 million (EUR 848 million)
· Adjusted EBITA increased to EUR 136.5 million, or 10.3 percent of sales
(EUR 133.0 million, or 10.5%)
· Earnings per share totaled EUR 0.47 (EUR 0.46)
· Free cash flow was EUR 43 million (EUR 136 million) and was negatively
affected mainly by an increase in net working capital
Outlook for 2017 (changes in brackets)
Metso's overall trading conditions are expected to be better than in 2016.
Demand for our products and services in 2017 is expected to develop as
follows:
* Improve to satisfactory for mining equipment (previously: weak) and remain
good for mining services
* Remain good for aggregates equipment and services
* Remain good for flow control products related to customers' new investments
and services
At the end of June 2017, our backlog for 2017 totaled approximately EUR 1
billion. In the current market conditions, we continue to expect some
postponements to planned delivery timetables. Capital expenditure excluding
acquisitions is expected to increase compared to 2016, but to remain below
depreciation and amortization.
President and CEO Matti Kähkönen:
Market sentiment has turned slightly better in our customer industries during
the first half of the year and we saw good activity during the second quarter.
Orders grew in both segments, when adjusting for a large mining equipment order
from the comparison period. Our aggregates business has continued to improve,
thanks to favorable market development in several regions. In mining, we have
seen a positive change in the equipment business, and services orders have
continued to grow year-on-year across our offering. Activity in Flow Control has
been in line with expectations, and the second quarter saw orders remaining at a
healthy level in valves and increasing in pumps.
Metso's sales and thus profitability were slightly disappointing but we think
this is largely related to timing. The improved order book is expected to
provide a good starting point for the second half of the year. Minerals suffered
from low sales in mining equipment as well as high raw material costs and weak
sales mix in the services business. Flow Control's margin was affected by low
volumes and related under-absorption as well as sales mix.
Beyond the financial performance, we made good progress in our strategic
initiatives across our businesses. We took our digital strategy forward by
forming a strong partnership to deliver a global industrial Internet of Things
(IoT) platform to better serve our mining and aggregates customers. We also
decided on investments to increase production of both wear part castings for
mining crushers and Lokotrack mobile crushing plants. In Flow Control, we
expanded our distribution network in the UK, Benelux, and Spain.
Finally, I have the pleasure to welcome Nico Delvaux to Metso as the new
President and CEO as of August 1. I am confident that Metso will further develop
under his leadership.
Key figures
Q1-Q2/ Q1-Q2/
EUR million Q2/2017 Q2/2016 Change % 2017 2016 Change % 2016
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Orders received 749 761 -2 1,482 1,424 4 2,724
Orders received by the 976 11
services business 480 444 8 877 1,741
% of orders received 64 58 66 62 64
Order backlog at the end of 1,411 1
the period 1,399 1,320
Sales 675 671 1 1,323 1,272 4 2,586
Sales of the services 868 2
business 445 439 1 848 1,703
% of sales 66 65 66 67 66
Earnings before interest,
tax and amortization
(EBITA), adjusted 70.0 77.3 -9 136.5 133.0 3 274.0
% of sales 10.4 11.5 10.3 10.5 10.6
Operating profit 59.8 69.3 -14 119.2 119.7 0 227.1
% of sales 8.9 10.3 9.0 9.4 8.8
Earnings per share, EUR 0.24 0.28 -14 0.47 0.46 2 0.87
Free cash flow 4 74 -95 43 136 -68 339
Return on capital employed
(ROCE) before tax,
annualized, % 11.1 11.0 10.4
Equity-to-asset ratio at
the end of the period, % 45.9 47.4 48.0
Net gearing at the end of
the period, % 7.5 12.8 -1.8
Personnel at the end of the
period 11,788 12,099 -3 11,542
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Metso is a world leading industrial company serving the mining, aggregates,
recycling, oil, gas, pulp, paper and process industries. We help our customers
improve their operational efficiency, reduce risks and increase profitability by
using our unique knowledge, experienced people and innovative solutions to build
new, sustainable ways of growing together.
Our products range from mining and aggregates processing equipment and systems
to industrial valves and controls. Our customers are supported by a broad scope
of services and a global network of over 80 service centers and about 6,000
services professionals. Metso has an uncompromising attitude towards safety.
Metso is listed on the Nasdaq Helsinki in Finland, and had sales of about EUR
2.6 billion in 2016. Metso employs over 11,000 people in more than 50 countries.
Expect results.
metso.com , twitter.com/metsogroup
For further information, please contact:
Matti Kähkönen, President and CEO, Metso Corporation, tel. +358 20 484 3000
Eeva Sipilä, CFO, Metso Corporation, tel. +358 20 484 3010
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel.
+358 20 484 3253
Metso Corporation
Eeva Sipilä
CFO
Juha Rouhiainen
VP, Investor Relations
Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com
Conference call details
Conference call participants are requested to dial in five minutes before the
scheduled time on:
United States: +1 719 457 1036
other countries: +44 330 336 9105
The confirmation code for joining the conference call is 4874171.
A recording of the event is available at www.metso.com/latestreports at the
earliest after the event has finished and a transcript of the event will be
available on Monday, July 24 at the latest.
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